CORE Executive Director Mohammad Faisal remarked in a press release here on Saturday that Indonesias export share in Saudi Arabia is still minimal as compared to that of other Asian countries, such as China, South Korea, Thailand, and Vietnam.
"Of the total imports of Saudi Arabia in 2015, the market share of Indonesian exports amounted to only 1.5 percent. Meanwhile, Thailand was at 2.3 percent and Vietnam, 1.8 percent," he said.
Faisal pointed out that so far, Indonesias biggest exports to Saudi Arabia are motor vehicles, processed timber, palm oil, and fish products.
In addition to encouraging increased exports of these products, Indonesia also needs to promote the exports of other products, such as footwear, textiles, and apparel, as market penetration in Saudi Arabia is still low.
The market for these products in Saudi Arabia has the potential to increase in line with the Saudi governments plan to increase Umrah tourists, which currently stands at only 8 million to 30 million per year.
CORE also noted that Saudi Arabias investment in Indonesia during the 2013-2016 period was still relatively small, and more in the tertiary sector, especially the trade and repair sectors and the property sector, particularly hotels and restaurants.
The value of Saudi Arabia-based investment in Indonesia in 2016 amounted to only US$900 thousand, or only ranks 57th, while investment from Singapore, Japan, and China respectively reached $9 billion, $5.5 billion, and $2.75 billion.
Hence, the government needs to encourage increased state investment to sectors that have been prioritized, such as the development of crude oil processing and petrochemical industries.(*)
Editor: Heru Purwanto
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